RSI (Relative Strength Index) is a popular momentum indicator used in crypto trading to measure the strength and speed of price movement. It was developed by J. Welles Wilder and helps traders identify whether an asset is overbought, oversold, or trending. RSI moves between 0 and 100. When RSI goes above 70, the asset is considered overbought, meaning buying pressure may be exhausted. When RSI falls below 30, the asset is oversold, showing potential for a bounce.

RSI is calculated by comparing average gains and average losses over a specific period, usually 14 candles. Importantly, RSI does not predict price direction; it reflects market momentum and trader psychology. In strong uptrends, RSI can stay above 70 for a long time, while in downtrends it can remain below 30.

Professional traders use RSI with support and resistance, volume, and trend analysis, not alone. RSI works best as a confirmation tool, not a buy or sell signal by itself.#RSI